Small Business Committee to host a hearing on Employee Ownership

On Wednesday, February 5, the U.S. House Small Business Committee announced a full committee hearing called “Challenges and Benefits of Employee-owned Small Businesses,” which will take place on Wednesday, February 12 at 11:30am in the Small Business Committee hearing room, Rayburn 2360 in Washington, D.C.

The hearing is a followup on the 2018 passage of the bipartisan Main Street Employee Ownership Act. Motivated by the potential impact on the economy as waves of small business owners approach retirement age, Congress intended to ensure that the Small Business Administration (SBA) and the network of Small Business Development Centers across the nation were including conversions to cooperatively-owned and other employee-owned business structures, like Employee Stock Ownership Plans (ESOPs), in their education and outreach to business owners on succession planning.

We have not yet seen the Small Business Administration follow through on the full scope of the Main Street Employee Ownership Act, and this hearing plays an important role in ensuring that this legislation is fulfilled. The USFWC has been working alongside our national partners to make sure that this historic, first-ever federal level bill featuring worker cooperatives is fulfilled and that it encourages the growth of worker ownership and democratic governance in the U.S.

This hearing signals the dedication of Congress, particularly the House Small Business Committee, to the cooperative community and our concerns about SBA’s lack of support for cooperative businesses.

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Posted in News, Policy.